Vending Machines Market

Global Vending Machines Market Size (2024 to 2032)

The Global Vending Machines Market was worth US$ 20.46 billion in 2023 and is anticipated to reach a valuation of US$ 32.01 billion by 2032 from US$ 21.50 billion in 2024, and it is predicted to register a CAGR of 5.1% during the forecast period 2024-2032.

Current Scenario of the Vending Machines Market

The industry is expected to achieve a higher growth rate in the next five years. As of now, the companies have shifted their focus to the development of green vending machines as well as connected and smart vending machines. In addition, as per a survey, North America and the rest of the world both have more or less 2.1 million installed connected vending machines which is anticipated to increase to 12.3 million units worldwide by 2027. Also, it is estimated that at the end of the projection period, the worldwide penetration rate will climb up to 75.7 percent. Apart from North America and Europe, the major market is China with a significant volume of connected vending machines.

MARKET DRIVERS

The advancements and application of sustainable and green vending machines will drive the market growth rate forward.

The shift in customer choices, buying behavior, and technological developments have resulted in various transitions in the vending machine market in the last 10 years. Moreover, health and sustainability are the two highly important changes that took place apart from the inclination towards personalization, cashless payments, remote surveillance, and maintenance. Furthermore, companies are using motion sensors, power-saving modes, and LED lights, which make it an energy-efficient machine. Green VMs are utilizing environment-friendly packing supplies like recycled paper, composite materials, and biodegradable plastics. All these are augmenting the market growth of vending machines.

MARKET RESTRAINTS

The rising privacy concerns due to the wrong application of other technologies in vending machines are hampering the market growth.

One such technology is facial recognition and its high frequency in private and public-sector organizations is expanding the other problems which are of great importance to the privacy department in countries. This is already hindering the expansion of the vending machines market and will continue to do so if sufficient and appropriate actions are taken timely. For instance, in February 2024, over two dozen vending machines will be removed from Southwestern Ontario University because students complained about facial recognition technology, which is a key security issue. The university was not aware of the potential risks involved in the technology.

MARKET CHALLENGES

Reliability and maintenance of vending machines and customer preferences are derailing the market expansion.

These are extremely popular in public places and companies, but most of the time, these machines are left unattended after suffering any issue or problem. This pattern is more prevalent in developing nations and even in certain developed economies as well. Moreover, the dynamic nature of digital payment technology, network and connectivity ecosystems, and especially the health and wellness sector, are leading consumers to change their choices quickly. Also, different climatic conditions and seasons are influencing the consumption of certain food and other items which is hurting the vending machines market.

MARKET OPPORTUNITIES

Emerging economies are presenting potential opportunities for the expansion of the vending machines market. These are rapidly gaining popularity in East and South Asia, like Japan and South Korea, and in Oceania nations, such as Australia and New Zealand. Also, the industry in India is quickly growing with massive earning potential. It is the biggest among all the developed countries in terms of digital payments with the rapid increase in urban population and spending power. As per industry experts, the profit margins in India can vary between 43 to 86 percent depending on the city.

Besides this, reverse vending machines are also gaining traction. These are used for dumping cans, plastic bottles, and other containers, which subsequently reward the people with an incentive or a payment.

REPORT COVERAGE

SEGMENT ANALYSIS

Global Vending Machines Market Analysis By Application

The office segment holds the maximum share of the vending machines market and is estimated to register an elevated growth rate in the coming years. The increase of contactless VMs in office buildings or work premises in developing countries like India is rising at a fast pace. Also, the emergence of smart vending machines is further enabling the employees and IT support services to develop a method that provides staff with self-serve. Many big MNCs have different VMs for various purposes other than food, like computer or laptop accessories, stationery items, medical supplies, etc.

Global Vending Machines Market Analysis By Payment Mode

The cashless segment is expected to lead the category of the vending machines market. The rapid growth in the digital payments infrastructure and associated service providers are the key drivers of the segment’s development. Considering the exponential rise in the frequency of India’s digital transactions cashless VMs will quickly consolidate its position in the country. Interestingly, more than 65 percent of vending machines will be completely cashless against 56 percent in 2021. Further, the average cash transaction in 2022 was 1.36 dollars whereas the cashless accounted for 2.11 dollars. Additionally, the use of contactless payment options like mobile wallets or QR code-based payment facilities saw a tremendous spike.

Global Vending Machines Market Analysis By End-User

The QSR, Shopping Malls & Retail Stores segment is experiencing increased traction across the regions which is driving the vending machines market forward. This can be credited to swift urbanization, rising disposable income and changing lifestyles. The evolving eating habits have surged the demand for comfort and quick snack items and drinks among Generation Z and Alpha. In addition, governments around the world have initiated or are in the process of building smart cities and, coupled with the growth in the customer’s spending power, are contributing to achieving technological advancements and expanding the vending machines market.

REGIONAL ANALYSIS

North America is a major player in the vending machines market with the highest industry share. This is due to the increased pace of technological development. Moreover, as per the U.S. Bureau of Labor Statistics, in 2024, there was a 128.40 percent increase in food prices, i.e., 45.68 dollars in mobile vendors and vending machines, against around 2o dollars in 1997. The inflation rate on average is 3.11 percent on food from such machines, whereas the total inflation rate in this same period was 2.47 percent. This shows that foodstuffs in these machines were more expensive. Apart from this, vending machines for drugs and medical supplies are rapidly making their presence in the US and Canada. For example, free harm reduction vending machines were installed in Hamilton County, Ohio, and in Winnipeg, Manitoba, Canada.

Europe is expected to grow at an elevated rate during the forecast period of the vending machine market. It has over 1.5 million connected vending machines. Televend (INTIS), Nayax, Crane Payment Innovations, and Ingenico are some of the prominent companies in the regional industry. Moreover, their penetration rate is moderate and rising. Cashless payments remain a key contributor to the thriving vending machine market.

Asia Pacific is believed to grow at a higher CAGR during the forecast period for the vending machines market. Countries like China, Japan, South Korea, and India are pushing forward the regional market development. In recent times, the quantity of these machines has grown remarkably in China, and it is believed to emerge as the main player in the regional market. As of the end of 2023, InHand Networks accounts for a major portion of the Chinese industry with around 300 thousand vending machines. Moreover, South Korea sold vending machines worth around 4.37 million to other nations, which positioned itself as the 39th largest exporter of such machines. Additionally, these are very common in public places and buildings in Japan, and the industry is especially propelled by the high level of availability and convenience it provides to its people.

The Middle East and African vending machines market will likely move further at a moderate pace in the coming years. This can be attributed to the rising installation of these machines in hotels, shopping malls and airports. In addition, the United Arab Emirates and Saudi Arabia are expected to be the top adopters in the ME region. Also, recently, in May 2024, the UAE launched its latest open-source GenAI model called Falcon 2 to challenge the top technology companies in the world. Hence, such advancements will propel the MEA vending machines market.

Latin America is anticipated to experience steady growth in the vending machines market in the projection period. This is because of the evolving lifestyle of customers and the change in customer choices for premium food and beverages and convenient and ready-to-eat snacks. Moreover, the growing sales through food vendors, supermarkets, and hypermarkets, along with the tourism sector, are elevating the region’s market growth rate. In addition, the rising collaboration between F&B companies and tech giants is further fuelling the demand for automatic retail vending machines. Also, Brazil and Argentina are swiftly implementing QR codes in food stands and bars owing to the wide popularity of soft drinks and making a big portion of VM revenue in LA.

KEY PLAYERS IN THE GLOBAL VENDING MACHINES MARKET

Companies playing a prominent role in the global vending machines market include American Vending Machines, Automated Merchandising Systems, Azkoyen Vending Systems, Bianchi Industry SpA, Bulk Vending Systems, Continental Vending, Evoka Group, Crane Merchandising Systems Inc, Fuji Electric Co., Ltd, Sanden Holdings Corporation, Cantaloupe Systems, Westomatic Vending Services Ltd., Royal Vendors, Inc., Glory Ltd., Seaga Manufacturing, Inc., Orasesta S.p.A., Sellmat S.r.l., and Others.

RECENT HAPPENING OF THE GLOBAL VENDING MACHINES MARKET

• In April 2024, Lavazza, which is an Italian coffee roaster press, released that it will increase its shareholding in IVS Group to 48.76 percent for 185 million euros. Also, it already had an agreement to completely purchase its vending machine business in 2027.
• In March 2024, it was announced that Ulta Beauty is at the testing stage in the development of a next-generation SOS smart vending machine with an in-store sampling program. This offers customers fast product discovery and convenience.
• In March 2024, Pearson India introduced its first vending machine for books for readers in Bengaluru. The company aims to improve the customer’s overall buying experience by giving them access to a wide variety of educational and learning books currently issued by it.

DETAILED SEGMENTATION OF THE GLOBAL VENDING MACHINES MARKET INCLUDED IN THIS REPORT

This research report has segmented and sub-segmented the global vending machines market based on application, payment mode, end-user and region.

By Application

• Commercial Places
• Offices
• Public Places
• Others

By Payment Mode

• Cash
• Cashless

By End-User

• QSR, Shopping Malls, & Retail Stores
• Offices
• Public Transport
• Others

By Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa